A Chinese state-owned Manchester-based contractor has reported a loss, after its revenue fell 61 per cent.
Beijing Construction Engineering Group UK (BCEGI) blamed “macroeconomic issues” for a pre-tax loss of £5.4m in the year to 31 December 2022, after its turnover fell from 62, 9 million to 24.4 million pounds.
The 80-employee contractor is based at Manchester Airport, where it has been working on the £1bn Airport City project, which includes new hotel, manufacturing, office and logistics space, since 2013.
BCEGI is also the main contractor for Middlewood Locks, a £1 billion mixed-use scheme in Salford; Church Street Place, a 22-storey residential development in Eccles (pictured); and a £130m refurbishment of the Galleries shopping center in Wigan.
In a strategic report accompanying the accounts, BCEGI’s board said the company’s results were affected by “the consequences of the Covid-19 pandemic, the problems of the increase in the price of materials and the labor created to some extent by Brexit, the global instability of fuel prices and the war in Ukraine”.
The company said it struggled “to conclude contracts in a timely manner as would have been possible at certain times, which has led to reduced turnover and a delay in the start of projects, and there has been pressure on operating margins of the project”.
He added: “Directors have not been able to find pragmatic solutions to these delays and cost issues by working with customers, consultants and our supply chain to share the risk equitably.”
However, the company said the “outlook for the coming years remains positive”, adding that it is still looking for new residential and commercial work in the North West and North East of England.
“The company continues to focus on internal controls to maintain and improve margins where possible, as well as to ensure that organic growth is achieved in a well-managed and controlled manner,” he added.
